Long overdue
A holistic approach is needed to fix the private rented sector, writes Naushabah Khan MP
For some time now, the private rented sector in Britain has been in desperate need of reform. The broken status quo we inherited from the Conservatives allows landlords to uproot families from their homes with little notice and minimal justification. This system fails to protect renters from unfair evictions while simultaneously allowing honest landlords to be undercut by those who choose to exploit housing law loopholes. Taken together with a persistent failure to build affordable new homes, under the Tories, we effectively surrendered our ability to provide homes for working people.
Before the election, we promised to deliver meaningful change to give the 11 million private renters in England the security and stability that I believe is their basic human right. We have already started to make good on this promise: the introduction of the Renters’ Rights Bill marks the most significant set of legislative reforms to the private rented sector since the Housing Act of 1988. As a member of the housing, communities and local government select committee, I have seen the comprehensive scrutiny and detailed work that has gone into ensuring the robustness of these reforms.
On multiple fronts, this bill takes the necessary actions required to create a more effective and just private rented sector for both tenants and landlords. By abolishing Section 21 ‘no fault evictions’, this government has reduced the threat of arbitrary evictions while at the same time clarifying potential grounds for repossession. Rent increases will only be permitted once per year and only to the market rate, with all increases made using a standardised process. New laws to end the practice of rental bidding, which prohibit landlords from asking or accepting a higher offer than advertised, alongside new powers for local councils to combat rental discrimination, will give tenants further protection.
The bill also pushes for drastic improvements to rented properties. Applying the Decent Homes Standard to the sector will ensure rented homes are secure and hazard free, whilst Awaab’s Law sets out exact legal expectations for when landlords must act to make homes safe. Enforcement will be improved by the introduction of a new private rented sector ombudsman to deliver quick, impartial, and binding resolutions for tenants’ complaints, with local authorities also gaining new investigatory powers to target and punish dodgy landlords. This bill is both desperately required and significant in its reformative scope to deliver a fairer rental market.
However, on its own, regulation will not be enough. We must also address the severe shortage of good-quality housing. Prior to becoming an MP, I worked at St Mungo’s to combat homelessness and as a cabinet member for housing and property for Medway council. These experiences affirmed my belief that we must be bold in our approach to increasing housing supply. The good news is that Angela Rayner has made clear that building 1.5mnew homes by 2029 is an absolute priority for this government.
The government must go further than reform of the planning system to transform our housebuilding sector, including opening up more opportunities for SME housebuilders, unlocking council house building, and facilitating the expansion of the construction workforce. Ultimately, close collaboration between national and local government – as well as housebuilders and the wider industry – is needed to determine what type of houses get built, and by whom. If we succeed, we will not only deliver vital homes but unleash economic growth to cities, towns, and communities across the UK.
In conjunction with increasing our housing supply, there are further areas for legislative review that should be considered by the government to transform the private rented sector. I have spoken in the Commons about the issue of out-of borough placements, which fail to create new homes, artificially drive up rents, place significant pressure on local authorities and remove often vulnerable families from their relations and support networks. Reviewing and changing this ineffective system should be incorporated into the government’s reforming agenda. To start, increased communication between local councils would be beneficial, as would a national database tracking placements to build a broader picture of the problem. Going forward, a review of the funding distribution model may be required to ensure that host local authorities aren’t priced out of the market entirely. And again, we must support councils to build their own social housing swiftly and at scale.
The private rented sector, following 14 years of Conservative mismanagement and 16 housing ministers since 2013, is in critical need of legislative reform and a construction strategy to deliver homes across Britain. It is an unenviable task – but this pioneering Labour government is more than up to the challenge.
Image credit: Ethan Wilkinson via Unsplash